Perth land prices hit record high as housing shortage drives fierce competition

The average price of new land in Greater Perth has reached $424,025, which is the highest average price on record for new land in the region.

The price is up 18.3 per cent compared to the same quarter last year and a staggering 78 per cent increase over the past five years.

The steep price hikes reflect the combined impact of population growth, construction cost escalation and a sustained shortage of new, housing ready land coming to the market.

Despite the increasing prices, Perth remains one of the most affordable capital cities in Australia.

UDIA WA’s recently released March 2026 quarter Urban Development Index (UDI), provides a comprehensive analysis of the new land market across Greater Perth and the regions.

For property investors and new home buyers, the latest figures show the market in Greater Perth is still grappling with intense demand and limited stock, however, construction activity is finally beginning to lift, potentially signalling the early stages of supply relief.

Where the land price growth is happening

The UDI provides a detailed breakdown of new land sales and production activity across Greater Perth’s four major growth corridors.

The highest growth area was the North West Corridor, primarily driven by new housing estates in the City of Wanneroo, where 1,002 new lots were sold with an average price of $420,605 for the quarter.  That is a 4.7 per cent increase on price in the area compared to last quarter, and close to a 20 per cent increase on the same time last year.

The South East Corridor, primarily driven by sales in the City of Armadale and Serpentine Jarrahdale, was the second highest growth area with 590 sales and an average price of $377,238, which is well below the Greater Perth average, despite a 2.2 per cent quarterly increase and a 7.1 per cent increase in values over the year. 

For buyers seeking relative affordability without compromising on growth potential, this corridor continues to offer compelling value, with Shire of Serpentine Jarrahdale home to the lowest average price of new land in Greater Perth.

Stock levels remain low

One of the most striking findings in the UDI report is the extremely low level of stock available on the market as of 31 March 2026.

At the end of the March quarter, there were just 386 lots on the market across Greater Perth, which is a dramatic shortfall compared to the five‑year rolling average of 1,237 lots and the second lowest number of lots recorded on the market since September 2018.

For buyers, this means limited choice and heightened competition. For investors, it reinforces the strength of underlying demand and the likelihood of continued price pressure until supply improves.

A positive sign for future supply

While new lots on the market are currently at a low point, the UDI shows encouraging momentum in the construction pipeline.

Although the number of lots under construction for release within 12 months fell 11.8 per cent quarter‑on‑quarter, the year‑on‑year comparison is looking up. The UDI reports 7,711 lots under construction, which is up 35 per cent compared with activity recorded in March 2025.

This is a clear indication that industry has significantly ramped up delivery where possible, despite ongoing labour and materials constraints.

For new home buyers, this means more land should begin to flow onto the market through late 2026 and 2027, but the demand versus supply ratio will remain relatively tight for some time to come.

Demand remains strong

Western Australia’s population continues to grow, albeit at a more moderated rate than was the case directly following the pandemic.

Even with higher interest rates and cost‑of‑living pressures, buyer demand, particularly from first home buyers and owner‑occupiers, remains elevated.  

According to the UDI, first home buyers make up just over 50 per cent of sales for new land, followed by owner-occupiers with 34 per cent market share and investors representing just 16 per cent of purchasers for the March 2026 quarter.

Perth remains an attractive lifestyle choice, with plenty of employment opportunities that will continue to attract people to want to live, work, play and invest here.

Government commits to big infrastructure spend

Given sustained demand for housing and subsequent affordability pressures, all levels of government are now prioritising housing delivery across the continuum.

The recent joint $2 billion State–Federal enabling infrastructure package recently announced as part of the WA State Budget was welcomed by industry to support critical infrastructure such as power, water and sewer that is all essential to facilitating residential development and unlocking new land supply.

The package, which echoed recommendations in UDIA WA’s State Budget submission, includes $522 million for the Housing Enabling Infrastructure Fund; close to $7 million for METRONET station precincts; a $250 million First Home Buyer Commercial Financing Facility (which will complement the new Pre-Sale Guarantee Scheme to be delivered by Keystart); $40 million to top up the Infrastructure Development Fund; and a state led build to sell program aimed at first home buyers.

The focus on enabling infrastructure continued during Federal Budget week, with the Albanese Government committing $2 billion across the nation to invest in enabling infrastructure to support new housing development in the Federal Budget.

That new commitment brings the Federal Government’s total investment in enabling infrastructure to $6.3 billion, representing a significant contribution toward the estimated $16 billion in enabling infrastructure required across the country.

In a more controversial move, the Albanese Government chose to break an election promise in its Federal Budget announcement and make changes to negative gearing and capital gains tax settings.  The changes have been received with a mixed and perhaps cautious response.

If managed carefully, this could create an opportunity to shift capital toward the delivery of additional homes, rather than simply competing over existing stock.

However, renters are likely to be competing for a smaller pool of existing properties while investment pivots to new dwellings, which puts further pressure on limited new stock.

What’s next in WA

While the critical investment in infrastructure is now being made, construction sector capacity remains a key challenge to getting the homes we need on the ground, faster. 

UDIA WA’s focus moving forward will remain on ensuring that ‘all the levers’ are being pulled and that we are working collaboratively with Government so that the state can effectively scale up the workforce needed to deliver housing, at pace, across both public and private sector projects.

For investors and new home buyers, opportunities remain strong, but navigating the market requires awareness, preparation and timely decision‑making.